Global markets came under pressure on Tuesday as investors weighed multiple sources of uncertainty, from looming US tariffs and Federal Reserve turbulence to concerns that stubborn inflation could delay rate cuts.
Markets remain nervous ahead of a 50 percent US tariff on Indian goods due to take effect on Wednesday. At the same time, political interference fears resurfaced after President Donald Trump announced plans to dismiss Federal Reserve governor Lisa Cook, who has opposed rate cuts in recent meetings.
The White House cited discrepancies in mortgage applications as grounds for the move, but traders worry the real aim is to weaken the Fed’s independence and push through rate cuts.
Adding to the unease, expectations of hotter-than-forecast US inflation data are dampening hopes of imminent easing.
Asian equities traded lower on Tuesday morning, with Japan’s Nikkei down about 1 percent, and South Korea and Australia off around 0.5 percent each. Hong Kong and Shanghai also opened weaker.
European stocks had ended in negative territory on Monday. France’s CAC 40 fell 1.64 percent after Prime Minister François Bayrou said he would seek a vote of confidence next month. Danish renewable energy major Ørsted plunged 16 percent after the US ordered a halt to its Rhode Island wind farm project. Dutch coffee group JDE Peet’s surged 17 percent on reports that Keurig Dr Pepper could buy the company, while Puma jumped 16 percent on speculation that the Pinault family may sell its stake.
On Wall Street, the Dow Jones Industrial Average dropped 349.27 points, or 0.77 percent, to 45,282.47 on Monday. The S&P 500 fell 0.43 percent to 6,439.32, and the Nasdaq Composite slipped 0.22 percent to 21,449.29.
US futures continued lower early Tuesday, with Dow futures down 0.21 percent, S&P 500 off 0.28 percent and Nasdaq down 0.41 percent.
Nvidia rose more than 1 percent after unveiling AI-powered robots and ahead of its results due Wednesday. Intel shares weakened after warning that a 10 percent government stake could crimp growth.
Despite global jitters, Indian equities ended higher on Monday. The Nifty 50 gained 97.65 points, or 0.39 percent, to close at 24,967.75, while the Sensex advanced 329.06 points, or 0.40 percent, to 81,635.91. The Bank Nifty eased 0.02 percent.
IT stocks led the rally, with the Nifty IT index rising 2.37 percent. Realty, metal, consumer durables, pharma and auto also gained, while media and public-sector banks lagged.
Foreign investors sold shares worth ₹2,466 crore in the cash market, while domestic funds bought ₹3,177 crore.
Gold rose in early trade on Tuesday after a modest dip on Monday, when it closed $6 lower at $3,367.30 per ounce. Prices rebounded to $3,381 in Asian trading. In India, 22-carat gold slipped ₹80 to ₹73,440 per sovereign. Silver eased to $38.58 per ounce.
The dollar index rose 0.73 percent to 98.43 on Monday before slipping to 98.25 Tuesday morning. The rupee weakened by 5 paise to 87.58 per dollar. The euro fell to $1.1613, the pound to $1.345 and the yen to 147.79 per dollar.
Brent crude climbed 1.5 percent on Monday to $68.80 a barrel before easing to $68.42 early Tuesday. WTI was at $64.41 and Murban crude at $71.77.
Cryptocurrencies slumped, with Bitcoin sliding 3.3 percent below $109,500 and Ether tumbling 9 percent to around $4,350.
Sensex: 81,635.91 ▲0.40%
Nifty 50: 24,967.75 ▲0.39%
Bank Nifty: 55,139.30 ▼0.02%
Midcap 100: 57,701.50 ▲0.12%
Smallcap 100: 17,911.55 ▼0.04%
Dow Jones: 45,282.47 ▼0.77%
S&P 500: 6,439.32 ▼0.43%
Nasdaq: 21,449.29 ▼0.22%
US futures (early Tuesday):
Dow ▼0.21% | S&P 500 ▼0.28% | Nasdaq ▼0.41%
Dollar index: 98.25 ▼ from 98.43
Rupee: ₹87.58 per $ ▲₹0.05 weaker
Euro: $1.1613 | Pound: $1.345 | Yen: 147.79/$
Gold: $3,367.30/oz ▼$6 | Early trade: $3,381
India gold: ₹73,440 per sovereign ▼₹80
Silver: $38.58/oz ▼
Brent crude: $68.80/bbl ▲1.5% (early: $68.42)
WTI crude: $64.41/bbl | Murban: $71.77/bbl
Bitcoin: $109,500 ▼3.3%
Ether: $4,350 ▼9%
